Orlando Class A office vacancy came it at 13.8 percent in the third quarter according to Cushman & Wakefield’s Orlando office. Average asking lease rates reached $24.37 per square foot, a few cents higher than last quarter. Both figures suggest that the city’s office market continues to become healthier, a trend that’s been underway since mid-2010 when office vacancy hit 20 percent. By the end of 2013, it had fallen to 15 percent, which Cushman & Wakefield reports is the city’s average over the last ten years.
Rental levels, however, continue to discourage developers of new downtown high-rises, who claim they would have to charge 20-25 percent more than the current Class A rates to make a worthwhile investment. This is what has been behind the exploration, hesitation and backing out on several mixed-use projects by developers in recent months.
